Dalmia Bharat Ltd. share price target

Dalmia Bharat (Dalmia) reported inline EBITDA, as sharper than expected drop in realisations was offset by cost control measures. Volumes reported marginal growth of 4% QoQ (+6% YoY), as the core markets were impacted by heavy monsoons. Cement realisations declined by 7% QoQ (+2.5% YoY; -2% vs. JMFe), owing to sharp drop in prices in East/South.

2QFY22 EBITDA was 6% ahead of our estimates with lower costs more than offsetting pricing pressure in East with 7% qoq lower realization. Divestment of non-core investments (IEX, Hippo) and focus on organic growth will help address investor concerns on capital allocation. The company would reach 36 mtpa capacity in FY2022E and is embarking on the next phase of expansion.

Dalmia Bharat's (DBEL) 2QFY22 results surpassed our estimates as the company benefitted from lower freight costs (-7% QoQ). EBITDA came in at INR6.2b v/s estimated INR5.4b and EBITDA/t at INR1,218 v/s estimated INR1,118. Profit stood at INR2.2b v/s estimated INR1.6b. DBEL has commenced commercial production at its 2.25mt grinding unit (Line 2) in Cuttack, Odisha and has also begun trial-runs at the acquired plants of Murli Industries (3mt grinding capacity in Maharashtra). We estimate DBEL to achieve a sales volume CAGR of 10.8% over FY21-24E,...

We maintain our BUY rating on the stock and value the company at 13.5x FY23E EV/EBITDA, to arrive at a target price of Rs2,520/share, implying an upside of 27% from the CMP.

Dalmia Bharat (DALBHARA) reported Q2FY22 EBITDA in line with our expectations. EBITDA for the quarter was benefited by incentive income of Rs600mn related to Bihar unit (including Rs490mn of FY20 and FY21) and one-time rebate of Rs150mn on railway freight. Adjusted for the same,...

We value DBL at 13.5x FY23E EV/EBITDA and arrive at a TP of Rs 2450/ share. We assign a BUY rating to the company with an upside potential of 19% from CMP.

Barring near-term uncertainty, demand outlook is positive in the longterm, given GoI's strong focus on infra & housing. Currently DBL trades at 1Yr Fwd EV/EBITDA of 12.5x, we value at 12x FY23E EV/EBITDA. Volumes growth on a low base and strong realisation maintains DBL reported revenue growth of 31%YoY mainly aided by strong volume growth of 34%YoY supported by low base (-20% in Q1FY21) and strong realisation (+4% YoY), but de-grew by 21%QoQ impacted by second wave. The ongoing capacity expansion and the ramp up in recent acquisitions will support future volume growth. Out of the ~8MT ongoing expansion, 3.2MT has already been completed, 2.2MT by next month...

We maintain our BUY rating on the stock, valuing the company at 13x FY23E EV/EBITDA, to arrive at a target price of Rs 2,370/share, implying an upside of 10% from the CMP.

North and central India to reach 60mnt mark by 2025. Dalmia Bharat (DALBHARA) reported Q1FY22 EBITDA in line with our expectations. Led by 34% volume growth, EBITDA grew 14% YoY (down 8%) to Rs7.0bn (PLe:Rs7.0bn). We increase our EBITDA estimates for...

We maintain our BUY rating on the stock valuing the Company at 9.5x of FY23E EV/EBITDA to arrive at a target price of Rs.1800/ share implying an upside of 19% from the CMP.